10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2017

OR

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______________ to _____________

Commission file number: 0-55087

DELANCO BANCORP, INC.

(Exact name of small business issuer as specified in its charter)

New Jersey   (State or other jurisdiction of incorporation or organization) 80-0943940 (I.R.S. Employer Identification No.)

615 Burlington Avenue, Delanco, New Jersey 08075

(Address of principal executive offices)

(856) 461-0611

(Issuer’s telephone number)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer    ☐	Accelerated filer   ☐
Non-accelerated filer      ☐	Smaller reporting company  ☒
(Do not check if a smaller reporting company)	Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  No ☒

As of February 6, 2018 there were 945,425 shares of the registrant’s common stock outstanding.

DELANCO BANCORP, INC.

FORM 10-Q

Index

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Statements of Financial Condition at December 31, 2017 (Unaudited) and March 31, 2017	1
	Consolidated Statements of Income (Loss) for the Three and Nine Months Ended December 31, 2017 and 2016 (Unaudited)	2
	Consolidated Statements of Comprehensive Income for the Nine Months Ended December 31, 2017 (Unaudited)	3
	Consolidated Statements of Changes in Stockholders’ Equity for the Nine Months Ended December 31, 2017 (Unaudited)	4
	Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2017 and 2016 (Unaudited)	5
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	30
Signatures		31

Part I. Financial Information

Item 1. Financial Statements

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

	December 31, 2017			March 31, 2017
	(unaudited)
ASSETS
Cash and cash equivalents
Cash and amounts due from banks	$	1,035,252		$	511,355
Interest-bearing deposits		10,700,468			6,487,188
Total cash and cash equivalents		11,735,720			6,998,543
Investment securities:
Securities available-for-sale (amortized cost of $2,066,023 and $2,588,817 at December 31, 2017 and March 31, 2017, respectively)		2,065,571			2,594,888
Securities held-to-maturity (fair value $20,655,700 and $21,797,695 at December 31, 2017 and March 31, 2017, respectively)		21,281,594			22,622,835
Total investment securities		23,347,165			25,217,723
Loans, net of allowance for loan losses of $1,005,774 at December 31, 2017 (unaudited), $1,001,449 at March 31, 2017		83,701,818			84,414,361
Accrued interest receivable		378,836			378,243
Real estate owned		1,311,438			1,271,302
Federal Home Loan Bank, at cost		102,000			124,300
Premises and equipment, net		5,878,969			6,047,703
Deferred income taxes		1,396,400			1,981,950
Bank-owned life insurance		178,514			178,514
Other assets		148,586			374,714
Total assets	$	128,179,446		$	126,987,353
LIABILITIES
Deposits
Non-interest bearing deposits	$	12,364,748		$	11,703,567
Interest bearing deposits		101,224,233			100,377,179
Total deposits		113,588,981			112,080,746
Accrued interest payable		1,734			6,273
Advance payments by borrowers for taxes and insurance		446,000			500,485
Other liabilities		892,237			908,005
Total liabilities		114,928,952			113,495,509
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at December 31, 2017 and March 31, 2017, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at December 31, 2017 and March 31, 2017	$	9,454		$	9,454
Additional paid-in capital		10,071,835			10,029,506
Retained earnings, substantially restricted		3,711,194			4,036,465
Unearned common stock held by employee stock ownership plan		(409,963	)		(455,514	)
Accumulated other comprehensive (loss)		(132,026	)		(128,067	)
Total stockholder’s equity		13,250,494			13,491,844
Total liabilities and stockholders’ equity	$	128,179,446		$	126,987,353

See Notes to the Unaudited Consolidated Financial Statements.

1

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income (Loss)

(Unaudited)

	Three Months Ended December 31,					Nine Months Ended December 31,
	2017			2016		2017			2016
INTEREST INCOME
Loans	$	897,940		$	875,015	$	2,706,558		$	2,641,794
Investment securities		163,567			144,313		481,205			460,080
Total interest income		1,061,507			1,019,328		3,187,763			3,101,874
INTEREST EXPENSE
Interest-bearing checking accounts		10,214			11,512		26,987			33,664
Passbook and money market accounts		32,954			30,158		95,798			89,850
Certificates of deposits		86,888			90,016		257,019			272,014
Federal Home Loan Bank Advances		−			336		15			5,148
Total interest expense		130,056			132,022		379,819			400,676
Net interest income		931,451			887,306		2,807,944			2,701,198
Provision (recovery)for loan losses		(25,000	)		26,000		(110,000	)		(22,000	)
Net interest income after provision for loan losses		956,451			861,306		2,917,944			2,723,198
NON-INTEREST INCOME
Gain on sale of an asset		−			−		71,516			−
Gain(Loss) on sale of real estate owned		(1,218	)		300		22,197			(2,540	)
Service charges		30,139			31,351		93,490			93,781
Rental income		9,310			9,597		28,510			34,632
Other		3,691			3,581		11,704			11,010
Total non-interest income		41,922			44,829		227,417			136,883
NON-INTEREST EXPENSE
Salaries and employee benefits		405,615			403,015		1,222,418			1,200,653
Advertising		4,708			3,844		12,615			15,221
Office supplies, telephone and postage		22,044			23,613		76,257			77,620
Loan expenses		4,925			6,561		25,158			40,893
Occupancy expense		140,376			146,685		421,574			440,038
Federal insurance premiums		19,444			1,247		61,506			86,673
Real estate owned loss reserve		−			49,000		80,218			62,100
Data processing expenses		65,226			61,431		190,930			188,589
ATM expenses		14,076			11,310		39,220			27,610
Bank charges and fees		19,566			20,504		61,194			64,606
Insurance and surety bond premiums		19,944			20,575		60,711			65,304
Dues and subscriptions		5,362			8,831		22,417			33,285
Professional fees		49,943			77,164		200,558			202,784
Real Estate Owned expense		29,010			31,831		83,432			93,982
Merger Related Expense		220,959			−		220,959			−
Other		32,950			35,175		100,601			105,036
Total non-interest expense		1,054,148			900,786		2,879,768			2,704,394
INCOME (LOSS) BEFORE INCOME TAX EXPENSE		(55,775	)		5,349		265,593			155,687
Income tax expense		422,964			2,030		590,864			74,482
NET INCOME (LOSS)		(478,739	)		3,319		(325,271	)		81,205
INCOME (LOSS) PER COMMON SHARE	$	(0.52	)	$	.00	$	(0.36	)	$	0.09

See Notes to the Unaudited Consolidated Financial Statements.

2

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

(Unaudited)

Nine Months Ended

	December 31, 2017			December 31, 2016
Net Income (Loss)	$	(325,271	)	$	81,205
Other comprehensive loss net of tax:
Unrealized (loss) on investment securities available for sale, net of deferred tax of ($136) and $3,280 for the nine months ended		(3,959	)		(12,069	)
Other comprehensive (loss)		(3,959	)		(12,069	)
Total Comprehensive Income (loss)	$	(329,230	)	$	69,136

See Notes to the Unaudited Consolidated Financial Statements

3

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Common Stock									Unearned Employee			Accumulated
	Shares		Amount		Additional Paid-in Capital		Retained Earnings			Stock Ownership Plan			Other- Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at March 31, 2017		945,425		9,454	$	10,029,506	$	4,036,465			(455,514	)		(128,067	)		13,491,844
Comprehensive loss
Net loss								(325,271	)								(325,271	)
Other comprehensive loss, net of tax:
Change in unrealized gain on securities-available-for-sale, net of deferred income tax of--------														(3,959	)		(3,959	)
Employee stock option expense						34,430											34,430
Shares of common stock transferred to ESOP for services						7,899					45,551						53,450
Balance at December 31, 2017		945,425		9,454		10,071,835		3,711,194			(409,963	)		(132,026	)		13,250,494

See Notes to the Unaudited Consolidated Financial Statements.

4

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended December 31,
	2017			2016
Cash flow from operating activities
Net Income (Loss)	$	(325,271	)	$	81,205
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
ESOP amortization		45,551			45,551
Deferred income taxes		588,114			71,780
Depreciation		175,134			194,432
Discount accretion net of premium amortization		363			(31,307	)
Recovery of loan losses		(110,000	)		(22,000	)
(Gain) Loss on sale of real estate owned		(22,197	)		2,540
Compensation expense for stock options		42,329			21,505
Changes in operating assets and liabilities
(Increase) decrease in:
Accrued interest receivable		(593	)		11,771
Other assets		226,128			175,971
Increase (decrease) in:
Accrued interest payable		(4,539	)		(4,721	)
Other liabilities		(15,768	)		82,274
Net cash provided by operating activities		599,251			629,001
Cash flows from investing activities
Proceeds of securities available for sale		522,794			525,109
Purchases of securities available for sale		−			(500,000	)
Purchases of securities held-to-maturity		−			(19,965,000	)
Proceeds from maturities and principal repayments of securities held-to-maturity		1,340,878			18,919,864
Sale of investment required by law – stock in Federal Home Loan Bank		22,300			129,500
Proceeds from sale of real estate owned		311,342			466,285
Net (increase) decrease in loans		493,262			(1,234,749	)
Purchases of premises and equipment		(6,400	)		(11,737	)
Net cash provided by(used in) investing activities		2,684,176			(1,670,728	)
Cash flows from financing activities
Increase in deposits		1,508,235			2,915,685
(Increase) decrease in advance payments by borrowers for taxes and insurance		(54,485	)		21,320
(Decrease) in Federal Home Loan Bank advance		−			(3,000,000	)
Net cash provided by (used in) financing activities		1,453,750			(62,995	)

5

	Nine Months Ended December 31,
	2017			2016
Net increase (decrease) in cash and cash equivalents	$	4,737,177		$	(1,104,722	)
Cash and cash equivalents, beginning of the period		6,998,543			12,127,388
Cash and cash equivalents, end of period		11,735,720			11,022,666
Supplemental Disclosures:
Cash paid during the period for interest		386,242			402,467
Cash paid during the period for income taxes		2,500			2,500
Loans transferred to foreclosed real estate during the period		410,000			610,148
Net change in unrealized gain on securities available-for-sale net of tax		(3,959	)		(12,069	)

See Notes to the Unaudited Consolidated Financial Statements.

6

DELANCO BANCORP, INC. AND SUBSIDIARY

Notes to the Unaudited Consolidated Financial Statements

December 31, 2017

(1) Basis of Presentation

On October 16, 2013, Delanco Bancorp, Inc., a New Jersey corporation (the “Company”), became the holding company for Delanco Federal Savings Bank (the “Bank”) upon completion of the “second-step” conversion of the Bank from a mutual holding company structure to a stock holding company structure (the “Conversion”). The Conversion involved the sale by the Company of 525,423 shares of common stock in a subscription and community offering, including shares purchased by the Bank’s employee stock ownership plan, the exchange of 420,002 shares of common stock of the Company for shares of common stock of the former Delanco Bancorp, Inc. (“old Delanco Bancorp”) held by persons other than Delanco MHC (the “MHC”), and the elimination of old Delanco Bancorp and the MHC. Net proceeds received from the reorganization and stock offering totaled $3,280,000, net of costs of $923,000.

The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). However, all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. Such adjustments were of a normal recurring nature. The results of operations for the three and nine month periods ended December 31, 2017 are not necessarily indicative of the results that may be expected for the entire year or any other interim period. For additional information, refer to the consolidated financial statements and footnotes thereto of the Company included in the Company’s annual report on Form 10-K for the year ended March 31, 2016.

(2) Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for losses on loans and the evaluation of deferred taxes.

(3) Deferred Income Taxes

We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are reviewed on a continual basis as regulatory and business factors change.

 On December 22, 2017 federal tax law changes contained in H.R. 1 were passed into law. These changes included a reduction in the federal corporate tax rates, lowering them from 35% to 21%. Due to the date of the enactment, even though the tax rate changes do not come into effect until 2018, the analysis and measurement of our deferred tax asset as of December 31, 2017, had to take these changes into account. This resulted in a one-time $428 thousand charge, or $0.46 per diluted share, of additional income tax expense.

The calculation of deferred taxes for GAAP capital differs from the calculation of deferred taxes for regulatory capital. For regulatory capital, deferred tax assets that are dependent upon future taxable income for realization are limited to the lesser of either the amount of deferred tax assets that the institution expects to realize within one year of the calendar quarter-end date, or 10% of the Bank’s Tier I capital. As a result of this variance, our Tier I regulatory capital ratio is lower than our GAAP capital ratio by 107 basis points.

7

(4) Income Taxes

The Bank accounts for uncertainties in income taxes in accordance with Financial ASC Topic 740 “Accounting for Uncertainty in Income Taxes”. ASC Topic 740 prescribes a threshold and measurement process for recognizing in the financial statements a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  The Bank has determined that there are no significant uncertain tax positions requiring recognition in its financial statements.   

Tax year 2016 remains subject to examination by Federal and 2014 through 2016 by New Jersey taxing authorities. In the event the Bank is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense.

(5) Earnings Per Share

Basic earnings per share (“EPS”) are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.

The difference between the common shares issued and the common shares outstanding for the purposes of calculating basic EPS is a result of the unallocated ESOP shares.

The calculated basic and dilutive EPS are as follows:

	Three Months Ended December 31,					Nine Months Ended December 31,
	2017			2016		2017			2016
Numerator	$	(478,739	)	$	3,319	$	(325,271	)	$	81,205
Denominators:
Basic shares outstanding		913,758			910,239		913,758			910,239
Effect of dilutive securities		−			4,252		−			4,252
Dilutive shares outstanding		913,758			914,491		913,758			914,491
Earnings per share:
Basic	$	(0.52	)	$	0.00	$	(0.36	)	$	0.09
Dilutive	$	(0.52	)	$	0.00	$	(0.36	)	$	0.09

8

(6) Termination of Regulatory Agreement

On September 27, 2017, the Office of the Comptroller of the Currency (the “OCC”) terminated the formal written agreement dated November 21, 2012 between the OCC and the Bank, effective immediately. In addition, the OCC terminated the higher individual minimum capital ratios that the OCC had required for the Bank. At December 31, 2017, the Bank exceeded the minimum regulatory requirements to be considered “well capitalized.” As a result of the OCC's action, the Bank is no longer considered to be in “troubled condition.”

(7) Recent Accounting Pronouncements

In August 2017, the FASB issued ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU-2017 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in the interim period, permitted. The Company plans to adopt ASU-2017 on April 1, 2019. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. While the Company continues to assess all potential impacts of the standard, the Company currently expects the adoption to have immaterial impact to the financial statements.

In May 2017, the FASB issued ASU 2017-09: Compensation —Stock Compensation (Topic 718): Scope of Modification Accounting. The Board is issuing this update to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation – Stock Compensation, to a change to the terms or conditions of a shared-based payment amount. The amendments in this update affect any entity that changes the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. To date, the Company has not changed the terms or conditions of a share-based payment award. As a result, the company does not anticipate an impact to the consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. This Accounting Standards update amends guidance on the amortization period of premiums on certain purchased callable debt securities. Specifically, the amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company does not currently hold any callable debt securities with a premium. As a result, the Company does not anticipate an impact to the consolidated financial statements.

Also in March 2017, the FASB issued ASU 2017-07: Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Topic 715, Compensation—Retirement Benefits, requires an entity to present net periodic pension cost and net periodic postretirement benefit cost as a net amount that may be capitalized as part of an asset where appropriate, Users have communicated that the service cost component generally is analyzed differently from the other components of net periodic pension cost and net periodic postretirement benefit cost. To improve the consistency, transparency, and usefulness of financial information for users, the amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company's current-accounting treatment and presentation of net periodic pension cost and not periodic postretirement benefit cost is consistent with the provisions in ASU-2017. As a result, the Company does not anticipate an impact to the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-03: Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323). The amendments in this update add and amend SEC paragraphs pursuant to the SEC Staff Announcements at the September 22, 2016 and November 17, 2016 Emerging Issues Task Force (EITF) meetings. The Company does not anticipate a material impact to the consolidated financial statements at this time.

9

Also in January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805), Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update affect all reporting entities that must determine whether they have acquired or sold a business. Public business entities should apply the amendments in this update to annual periods beginning after December 15, 2017, including interim periods within those periods. The Company intends to comply with the effective date of this update and does not anticipate an impact to the consolidated financial statements at this time.

In December 2016, the FASB issued ASU 2016-20; Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The amendments in this update cover a variety of Topics in the Codification related to the new revenue recognition standard (Accounting Standards Update No. 2014-09). The amendments in this update represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does not anticipate a material impact to the consolidated financial statements.

Also in December 2016, the FASB issued ASU 2016-19: Technical Corrections and Improvements. The amendments in this update cover a wide range of Topics in the Codification. The amendments in this update represent changes to make corrections or improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does not anticipate a material impact to the consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB Emerging Task Force. Stakeholders indicated that diversity exists in the classification and presentation of changes in restricted cash on the statement of cash flows under Topic 230. Statement of Cash Flows. This update addresses that diversity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should he included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The Company evaluated the amendments of this update and does not anticipate an impact to the consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15: Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments arc presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This update addresses the following eight cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from foe settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this update apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company does not anticipate a material impact to the consolidated financial statements at this time.

In June 2016, the FASB issued ASU 2016-13: Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Topic 326 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this update are effective for fiscal years beginning after December 15, 2019. The Company is in the process of evaluating the impact of this guidance but expects that the impact will likely be material to the consolidated financial statements.

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In May 2016, the FASB issued ASU 2016-12: Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this update address narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The amendments in this update affect the guidance in Accounting Standards Update No, 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The Company does not anticipate a material impact to the consolidated financial statements at this time.

In April 2016, the FASB issued ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this update clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements in Topic 606. The Company does not anticipate a material impact to the consolidated financial statements at this time.

In March 2016, the FASB issued ASU 2016-09: Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The Board is issuing this update as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition, the amendments in this update eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No, 123 (revised 2004), Share-Based Payment. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in March 2016, the FASB issued ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments in this update clarify the implementation guidance included in Topic 606 on principal versus agent considerations. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements in Topic 606. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in March 2016, the FASB issued ASU 2016-07: Investments – Equity Method and Joint Ventures (Topic 323). To simplify the accounting for equity method investments, the amendments in this update eliminate the requirement in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in March 2016, the FASB issued ASU 2016-05: Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this update clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815, does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in March 2016, the FASB issued ASU 2016-04: Liabilities— Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products. When an entity sells a prepaid stored-value product (such as gift cards, telecommunication cards, and traveler's checks), it recognizes a financial liability for its obligation to provide the product holder with the ability to purchase goods or services at a third-party merchant. When a prepaid stored-value product goes unused wholly or partially for an indefinite time period, the amount that remains on the product is referred to as breakage. There currently is diversity in the methodology used to recognize breakage. Subtopic 405-20 includes de-recognition guidance for both financial liabilities and nonfinancial liabilities, and Topic 606. Revenue from Contracts with Customers, includes authoritative breakage guidance but excludes financial liabilities. The amendments in this update provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606, The amendments in this update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier application is permitted, including adoption in an interim period. The Company does not anticipate a material impact to the consolidated financial statements at this time.

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(8) Fair Value of Financial Instruments

ASC Topic 820-10 defines fair value, establishes a framework for measuring fair value in U.S. generally accepted accounting principles, and expands disclosure requirements for fair value measurements. ASC Topic 820 does not require any new fair value measurements. The adoption of ASC Topic 820-10 did not have a material impact on the consolidated financial statements.

ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as described below:

●    Level 1 Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

●    Level 2 Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable inputs other than quoted prices such as interest rates.

●    Level 3 Level 3 inputs are unobservable inputs.

Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2017
Available-for-sale securities	$	−	$	2,066	$	−
March 31, 2017
Available-for-sale securities	$	−	$	2,595	$	−

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Assets and Liabilities on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2017 and March 31, 2017 are as follows (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2017
Impaired loans	$	−	$	−	$	3,927
Real estate owned		−		−		1,311
Total	$	−	$	−	$	5,238
March 31, 2017
Impaired loans	$	−	$	−	$	4,883
Real estate owned		−		−		1,271
Total	$	−	$	−	$	6,154

The fair value of impaired loans and real estate owned is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.

A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input significant to the fair value measurement.

As required by ASC Topic 825-10-65, the estimated fair value of financial instruments at December 31, 2017 and March 31, 2017 was as follows:

	December 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	11,736	$	11,736	$	−	$	−
Investment securities-available for sale		2,066		−		2,066		−
Investment securities-held to maturity		21,282		−		20,656		−
Loans – net		83,702		−		−		85,243
FHLB stock		102		102		−		−
Accrued interest receivable		379		379		−		−
Bank–owned life insurance		179		179		−		−
Real estate owned		1,311		−		−		1,311
Total financial assets	$	120,757	$	12,396	$	22,722	$	86,554
Financial Liabilities:
Deposits-non-interest bearing	$	12,365	$	12,365	$	−	$	−
Deposits-interest bearing		101,224				99,530		−
Advance payments by borrowers for taxes and insurance		446		446		−		−
Accrued interest payable		2		2		−		−
Total financial liabilities	$	114,037	$	12,813	$	99,530	$	−

13

	March 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	6,999	$	6,999	$	−	$	−
Investment securities-available for sale		2,589		−		2,595		−
Investment securities-held to maturity		22,623		−		21,798		−
Loans receivable,– net		84,414		−		−		83,833
FHLB stock		124		124		−		−
Accrued interest receivable		378		378		−		−
Bank-owned life insurance		179		179		−		−
Real estate owned		1,271		−		−		1,271
Total financial assets	$	118,577	$	7,680	$	24,393	$	85,104
Financial Liabilities:
Deposits-non-interest bearing	$	11,704	$	11,704	$	−	$	−
Deposits-interest bearing		100,377		−		99,183		−
Advance payments by borrowers for taxes and insurance		500		500		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	112,587	$	12,210	$	99,183	$	−

Off-balance sheet instruments

Off-balance sheet instruments are primarily comprised of loan commitments and unfunded lines of credit which are generally priced at market rate at the time of funding. Therefore, these instruments have nominal value prior to funding.

	December 31, 2017				March 31, 2017
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	7,061	$	−	$	6,620	$	−

(9) Loans

The Bank monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Bank monitors the performance of its loan portfolio and estimates its allowance for loan losses.

Residential real estate loans consist of loans secured by one to four family residences located in the Bank’s market area. The Bank has originated one to four family residential mortgage loans in amounts up to 80% of the lesser of the appraised value or selling price of the mortgaged property without requiring mortgage insurance. A mortgage loan originated by the Bank, for owner occupied property, whether fixed rate or adjustable rate, can have a term of up to 30 years. Non-owner occupied property, whether fixed rate or adjustable rate, can have a term of up to 30 years. Adjustable rate loan terms limit the periodic interest rate adjustment and the minimum and maximum rates that may be charged over the term of the loan based on the type of loan.

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Commercial real estate loans are generally originated in amounts up to the lower of 80% of the appraised value or cost of the property and are secured by improved property such as multi-family dwelling units, office buildings, retail stores, warehouses, church buildings and other non-residential buildings, most of which are located in the Bank’s market area. Commercial real estate loans are generally made with fixed interest rates which mature or re-price in 5 to 7 years with principal amortization of up to 25 years.

Commercial loans include short and long-term business loans and commercial lines of credit for the purposes of providing working capital, supporting accounts receivable, purchasing inventory and acquiring fixed assets. The loans generally are secured by these types of assets as collateral and/or by personal guarantees provided by principals of the borrowers.

Construction loans will be made only if there is a permanent mortgage commitment in place. Interest rates on commercial construction loans are typically in line with normal commercial mortgage loan rates, while interest rates on residential construction loans are slightly higher than normal residential mortgage loan rates. These loans usually are adjustable rate loans and generally have terms of up to one year.

Consumer loans include installment loans and home equity loans, secured by first or second mortgages on homes owned or being purchased by the loan applicant. Home equity term loans and credit lines are credit accommodations secured by either a first or second mortgage on the borrower’s residential property. Interest rates charged on home equity term loans are generally fixed; interest on credit lines is usually a floating rate related to the prime rate. The Bank generally requires a loan to value ratio of less than or equal to 80% of the appraised value, including any outstanding prior mortgage balance.

Loans at December 31, 2017 and March 31, 2017 are summarized as follows (dollars in thousands):

	December 31, 2017			March 31, 2017
Residential (one-to four-family) real estate	$	60,450		$	61,419
Multi-family and commercial real estate		12,679			12,071
Commercial		2,854			1,858
Home equity		8,083			8,812
Consumer		645			637
Construction		51			680
Total loans		84,762			85,477
Net deferred loan origination fees		(54	)		(62	)
Allowance for loan losses		(1,006	)		(1,001	)
Loans, net	$	83,702		$	84,414

The Bank is subject to a loans-to-one-borrower limitation of 15% of capital funds. At December 31, 2017, the loans-to-one-borrower limitation was $1.9 million; this excluded an additional 10% of adjusted capital funds or approximately $1.3 million, which may be loaned if collateralized by readily marketable securities. At December 31, 2017, there were no loans outstanding or committed to any one borrower, which individually or in the aggregate exceeded the Bank’s loans to-one-borrower limitations of 15% of capital funds.

A summary of the Bank’s credit quality indicators is as follows:

Pass – A credit which is assigned a rating of Pass shall exhibit some or all of the following characteristics:

a. Loans that present an acceptable degree of risk associated with the financing being considered as measured against earnings and balance sheet trends, industry averages, etc. Actual and projected indicators and market conditions provide satisfactory evidence that the credit will perform as agreed.

15

b. Loans to borrowers that display acceptable financial conditions and operating results. Debt service capacity is demonstrated and future prospects are considered good.

c. Loans to borrowers where a comfort level is achieved by the strength of the cash flows from the business or project and the strength and quantity of the collateral or security position (i.e.; receivables, inventory and other readily marketable securities) as supported by a current valuation and/or the strong capabilities of a guarantor.

Special Mention – Loans on which the credit risk requires more than ordinary attention by the Loan Officer. This may be the result of some erosion in the borrower’s financial condition, the economics of the industry, the capability of management, or changes in the original transaction. Loans which are currently sound yet exhibit potentially unacceptable credit risk or deteriorating long term prospects, will receive this classification. Loans which deviate from loan policy or regulations will not generally be classified in this category, but will be separately reported as an area of concern.

Classified – Classified loans include those considered by the Bank to be substandard, doubtful or loss. An asset is considered “substandard” if it involves more than an acceptable level of risk due to a deteriorating financial condition, unfavorable history of the borrower, inadequate payment capacity, insufficient security or other negative factors within the industry, market or management. Substandard loans have clearly defined weaknesses which can jeopardize the timely payment of the loan.

Assets classified as “doubtful” exhibit all of the weaknesses defined under the substandard category but with enough risk to present a high probability of some principal loss on the loan, although not yet fully ascertainable in amount.

Assets classified as “loss” are those considered uncollectible or of little value, even though a collection effort may continue after the classification and potential charge-off.

Non-Performing Loans

Non-performing loans consist of non-accrual loans (loans on which the accrual of interest has ceased), loans over ninety days delinquent and still accruing interest, renegotiated loans and impaired loans. Loans are generally placed on non-accrual status if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more, unless the collateral is considered sufficient to cover principal and interest and the loan is in the process of collection.

The Bank continues to work with its borrowers where possible and is pursuing legal action where the ability to work with the borrower does not exist.  As of December 31, 2016, the Bank has entered into formal forbearance agreements with six relationships totaling $871 thousand that require current payments while the borrowers restructure their finances.

The following table represents loans by credit quality indicator at December 31, 2017 (dollars in thousands):

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	58,132	$	−	$	−	$	2,318	$	60,450
Multi-family and commercial real estate		11,313		−		163		1,203		12,679
Commercial		2,650		−		88		116		2,854
Home equity		7,858		−		−		225		8,083
Consumer		631		−		−		14		645
Construction		−		−		−		51		51
	$	80,584	$	−	$	251	$	3,927	$	84,762

16

The following table represents past-due loans as of December 31, 2017 (dollars in thousands):

	30-59 Days Past Due			60- 89 Days Past Due			Greater than 90 Days Past Due			Total Past Due			Current			Total Loan Balances
Residential real estate	$	278		$	364		$	1,635		$	2,277		$	58,173		$	60,450
Multi-family and commercial real estate		950			163			547			1,660			11,019			12,679
Commercial		−			−			116			116			2,738			2,854
Home Equity		64			−			−			64			8,019			8,083
Consumer		28			−			14			42			603			645
Construction		−			−			−			−			51			51
Total Loans	$	1,320		$	527		$	2,312		$	4,159		$	80,603		$	84,762
Percentage of Total Loans		1.56	%		0.62	%		2.73	%		4.91	%		95.09	%		100.00	%

Impaired loans are measured based on the present value of expected future discounted cash flows, the fair value of the loan or the fair value of the underlying collateral if the loan is collateral dependent. The recognition of interest income on impaired loans is the same for non-accrual loans discussed above. At December 31, 2017, the Bank had 16 loan relationships totaling $2.3 million in non-accrual loans as compared to 17 relationships totaling $3.2 million at March 31, 2017. The average balance of impaired loans totaled $4.2 million for the nine months ended December 31, 2017 as compared to $5.1 million for the year ended March 31, 2017, and interest income recorded on impaired loans for the nine months ended December 31, 2017 totaled $102 thousand as compared to $173 thousand for the year ended March 31, 2017.

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The following table represents data on impaired loans at December 31, 2017 and March 31, 2017 (dollars in thousands):

	December 31, 2017		March 31, 2017
Impaired loans for which a valuation allowance has been provided	$	−	$	−
Impaired loans for which no valuation allowance has been provided		3,927		4,883
Total loans determined to be impaired		3,927		4,883
Allowance for loans losses related to impaired loans		−		−
Average recorded investment in impaired loans		4,296		5,225
Cash basis interest income recognized on impaired loans		102		173

The following table presents impaired loans by portfolio class at December 31, 2017 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,039	$	1,979	$	−	$	2,182	$	39
Multi-family and commercial real estate		1,554		1,542		−		1,662		37
Commercial		116		116		−		135		11
Home equity		225		225		−		259		13
Consumer		14		14		−		2		−
Construction		56		51		−		56		2
Total	$	4,004	$	3,927	$	−	$	4,296	$	102

The following table presents impaired loans by portfolio class at March 31, 2017 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,289	$	2,239	$	−	$	2,711	$	60
Multi-family and commercial real estate		2,162		2,141		−		2,060		94
Commercial		171		171		−		153		9
Home equity		283		279		−		242		7
Consumer		−		−		−		1		−
Construction		58		53		−		58		3
Subtotal	$	4,963	$	4,883	$	−	$	5,225	$	173

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The following table represents nonaccrual loans as of December 31, 2017 and March 31, 2017 (dollars in thousands):

	December 31, 2017			March 31, 2017
Non-accrual loans:
Residential real estate	$	1,308		$	1,180
Multi-family and commercial real estate		547			506
Commercial		116			172
Consumer		14			−
Home Equity		−			53
Construction		−			−
Total non-accrual loans		1,985			1,911
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled Debt Restructurings:
In non-accrual status:
Residential real estate	$	327		$	740
Multi-family and commercial real estate		−			425
Commercial		−			−
Consumer		−			−
Home Equity		−			131
Construction		−			−
Total troubled debt restructurings in non-accrual status		327			1,296
Performing under modified terms:
Residential real estate		683			693
Multi-family and commercial real estate		656			240
Commercial		−			−
Consumer		−			−
Home Equity		225			95
Construction		51			52
Total troubled debt restructurings performing under modified terms:		1,615			1,080
Total troubled debt restructurings		1,942			2,376
Total non-performing loans		3,927			4,287
Real estate owned		1,311			1,271
Total non-performing assets		5,238			5,558
Non-performing loans as a percentage of loans		4.63	%		5.02	%
Non-performing assets as a percentage of loans and real estate owned		6.09	%		6.41	%
Non-performing assets as percentage of total assets		4.09	%		4.38	%

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During the nine months ended December 31, 2017, the Bank experienced an $895 thousand net decrease in non-accrual loans. This change reflects the return to accruing status of two commercial loan relationships consisting of three loans totaling $479 thousand, one residential loan of $222 thousand and two home equity loans for $184 thousand, the sale of one commercial loan in the amount of $253 thousand that was non-accrual, one residential mortgage totaling $410 thousand that was transferred to real estate owned and one commercial loan that was partially charged off by $35 thousand and principal repayments on other non-accrual loans of $9 thousand. These adjustments were offset by the downgrading of six loans to non-accrual status totaling $697 thousand during the nine months ended December 31, 2017. The downgraded loans consisted of three residential mortgages totaling $385 thousand, two commercial real estate loans totaling $298 thousand and one consumer loan for $14 thousand.

The following table presents troubled debt restructurings that occurred during the periods ended December 31, 2017 and March 31, 2017 and loans modified as troubled debt restructurings within the previous 9 and 12 month periods and for which there was a payment default during the period.

December 31, 2017

March 31, 2017

Outstanding Recorded Investment

Outstanding Recorded Investment

Number of Contracts

Pre- Modification

Post- Modification

Number of Contracts

Pre- Modification

Post- Modification

Troubled debt restructurings:

Residential real estate

−

−

−

1

$

77

$

96

	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Troubled debt restructurings that subsequently defaulted:
Residential real estate		−	$	−		−	$	−

The following table presents the changes in real estate owned (REO), net of valuation allowance, for the periods ended December 31, 2017 and March 31, 2017:

	December 31, 2017			March 31, 2017
Balance, beginning of period	$	1,271		$	1,763
Additions from loan foreclosures		410			500
Additions from capitalized costs		−			26
Dispositions of REO		(349	)		(922	)
Gain (loss) on sale of REO		23			(34	)
Valuation adjustments in the period		(44	)		(62	)
Balance, end of period	$	1,311		$	1,271

The following table presents the changes in fair value adjustments to REO for the periods ended December 31, 2017 and March 31, 2017:

	December 31, 2017			March 31, 2017
Balance, beginning of period	$	104		$	227
Valuation adjustments added in the period		80			62
Valuation adjustments on disposed properties during the period		(36	)		(185	)
Balance, end of period	$	148		$	104

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The following table sets forth with respect to the Bank’s allowance for losses on loans (dollars in thousands):

	December 31, 2017			March 31, 2017
Balance at beginning of period	$	1,001		$	1,099
Provision:
Commercial		−			(45	)
Commercial real estate		(7	)		(61	)
Residential real estate		(70	)		98
Home Equity		(32	)		29
Consumer		(1	)		(45	)
Construction		−			2
Total provision		(110	)		(22	)
Charge-offs:
Commercial		−			−
Commercial real estate		50			71
Residential real estate		−			102
Home equity		−			42
Consumer		−			−
Recoveries		(165	)	$	(139	)
Total Net Charge-Offs	$	(115	)	$	76
Balance at end of period	$	1,006		$	1,001
Period-end loans outstanding	$	84,762		$	85,477
Average loans outstanding	$	85,324			84,426
Allowance as a percentage of period-end loans		1.19	%		1.17	%
Net charge-offs as a percentage of average loans		(0.13	)%		0.09	%

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Additional details for changes in the allowance for loan by loan portfolio as of December 31, 2017 are as follows (dollars in thousands):

Allowance for Loan Losses

	Commercial		Commercial Real Estate			Residential Real Estate			Home Equity			Consumer			Construction		Total
Balance, beginning of year	$	64	$	274		$	575		$	74		$	12		$	2	$	1,001
Loan charge-offs		−		(50	)		−			−			−			−		(50	)
Recoveries		2		47			73			35			8			−		165
Provision for loan losses		−		(7	)		(70	)		(32	)		(1	)		−		(110	)
Balance, end of period	$	66	$	264		$	578		$	77		$	19		$	2	$	1,006
Ending balance for loans individually evaluated for impairment	$	186	$	805		$	2,084		$	459		$	−		$	51	$	3,585
Ending balance for loans collectively evaluated for impairment		2,668	$	11,874		$	58,366		$	7,624		$	645		$	−	$	81,177
Loans receivable:
Ending balance	$	2,854	$	12,679		$	60,450		$	8,083		$	645		$	51	$	84,762
Ending balance: loans individually evaluated for impairment	$	186	$	805		$	2,084		$	459		$	−		$	51	$	3,585
Ending balance: loans collectively evaluated for impairment	$	2,668	$	11,874		$	58,366		$	7,624		$	645		$	−	$	81,177

The Bank prepares an allowance for loan loss model on a quarterly basis to determine the adequacy of the allowance. Management considers a variety of factors when establishing the allowance, such as the impact of current economic conditions, diversification of the loan portfolio, delinquency statistics, results of independent loan review and related classifications. The Bank’s historic loss rates and the loss rates of peer financial institutions are also considered.

On a monthly basis, the loan committee meets to review each problem loan and determine if there has been any change in collateral value due to changes in market conditions. Each quarter, when calculating the allowance for loan loss, the loan committee reviews an updated loan impairment analysis on each problem loan to determine if a specific provision for loan loss is warranted. Management reviews the most recent appraisal on each loan adjusted for holding and selling costs. In the event there is not a recent appraisal on file, the Bank will use the aged appraisal and apply a discount factor to the appraisal and then adjust the holding and selling costs from the discounted appraisal value.

In evaluating the Bank’s allowance for loan loss, the Bank maintains a loan committee consisting of senior management and the Board of Directors that monitors problem loans and formulates collection efforts and resolution plans for each borrower.

For the nine months ending December 31, 2017, the Bank experienced one partial charge-off related to one relationship totaling $50 thousand as compared to one charge-off relating to one loan relationships totaling $40 thousand and partial charge-offs relating to three loan relationships totaling $175 thousand for the year ended March 31, 2017

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At December 31, 2017, the Bank maintained an allowance for loan loss ratio of 1.19% to loans outstanding. Non-performing assets decreased by $320 thousand over their stated levels at March 31, 2017, representing a non-performing asset to total asset ratio of 4.09% at December 31, 2017 as compared to a non-performing asset to total asset ratio of 4.38% at March 31, 2017. 

The Bank’s charge-off policy states that any asset classified loss shall be charged-off within thirty days of such classification unless the asset has already been eliminated from the books by collection or other appropriate entry. On a quarterly basis, the loan committee will review past due, classified, non-performing and other loans, as it deems appropriate, to determine the collectability of such loans. If the loan committee determines a loan to be uncollectable, the loan shall be charged to the allowance for loan loss. In addition, upon reviewing the collectability, the loan committee may determine a portion of the loan to be uncollectable; in which case that portion of the loan deemed uncollectable will be partially charged-off against the allowance for loan loss.

(10) Investment Securities

Investment securities have been classified according to management’s intent. The amortized cost of securities and their approximate fair values as of December 31, 2017 and March 31, 2017 are as follows:

	Held-to-Maturity December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	19,918	$	−	$	(655	)	$	19,263
Municipal Bond		810		−		(3	)		807
Mortgage-Backed Securities		554		32		−			586
Total	$	21,282	$	32	$	(658	)	$	20,656

	Held-to-Maturity March 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	20,418	$	−	$	(865	)	$	19,553
Municipal Bond		1,536		−		(3	)		1,533
Mortgage-backed securities:		669		58		(15	)		712
Total	$	22,623	$	58	$	(883	)	$	21,798

	Available for Sale
	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificate of deposit	$	2,000	$	2	$	(2	)	$	2,000
Mutual Fund Shares		66		−		−			66
	$	2,066	$	2	$	(2	)	$	2,066

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	Available-for-Sale
	March 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S .Government Agency Bonds	$	500	$	−	$	−		$	500
Certificates of Deposit		2,000		8		−			2,008
Mutual Fund Shares		89		−		(2	)		87
Total	$	2,589	$	8	$	(2	)	$	2,595

The following is a summary of maturities of securities held-to-maturity and available-for-sale as of December 31, 2017 and March 31, 2017:

	December 31, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	810	$	807	$	−	$	−
After one year through five years		686		678		2,000		2,000
After five years through ten years		9,346		9,073		−		−
After ten years		10,440		10,098		−		−
Equity securities						66		66
	$	21,282	$	20,656	$	2,066	$	2,066

	March 31, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,536	$	1,534	$	−	$	−
After one year through five years		500		497		−		−
After five years through ten years		8,573		8,292		2,000		2,008
After ten years		12,014		11,475		500		500
Equity securities		−		−		89		87
	$	22,623	$	21,798	$	2,589	$	2,595

The amortized cost and fair value of mortgage-backed securities are presented in the held-to-maturity category by contractual maturity in the preceding table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations without call or prepayment penalties.

Information pertaining to securities with gross unrealized losses at December 31, 2017 and March 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

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	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2017	Value		Losses			Value		Losses			Value		Losses
U.S. government Agency Bonds	$	1,981	$	(19	)	$	17,281	$	(636	)	$	19,262	$	(655	)
Certificates of deposit		998		(2	)							998		(2	)
Municipal Bonds		807		(3	)							807		(3	)
Total	$	3,786	$	(24	)	$	17,281	$	(636	)	$	21,067	$	(660	)

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
March 31, 2017	Value		Losses			Value		Losses			Value		Losses
U.S Government Agency Bonds	$	19,553	$	(864	)	$	−	$	−		$	19,553	$	(864	)
Certificates of deposit		249		(1	)		−		−			249		(1	)
Municipal Bonds		1,536		(3	)		−		−			1,536		(3	)
Mutual fund shares		−		−			87		(2	)		87		(2	)
Mortgage –Backed Securities:		−		−			216		(15	)		216		(15	)
Total	$	21,338	$	(868	)	$	303	$	(17	)	$	21,641	$	(885	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At December 31, 2017, the 41 debt securities with unrealized losses have depreciated 3.10% from the Bank’s amortized cost basis. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other-than-temporary.

(11) Agreement and Plan of Reorganization

On October 18, 2017, the Company and First Bank entered into an Agreement and Plan of Reorganization which provides for the acquisition of the Company by First Bank (the “Merger”) pursuant to the merger of the Company with and into a to-be-formed subsidiary of First Bank (“Merger Sub”) with Merger Sub as the surviving corporation. Simultaneously upon the completion of the Merger, the Bank will merge with and into First Bank. At the effective time of the Merger, the outstanding shares of capital stock of the Company will be converted into the right to receive 1.11 shares of First Bank common stock. The transaction is expected to close in the first quarter of 2018, subject to the satisfaction of customary closing conditions, including the receipt of all required regulatory approvals and the approval of the Company’s shareholders.

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Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of the financial condition and results of operations at and for the three and nine months ended December 31, 2016 and 2017 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the Unaudited Financial Statements and the notes thereto, appearing in Part I, Item 1 of this report.

Forward-Looking Statements

This quarterly report contains forward-looking statements that are based on assumptions and may describe our future plans, strategies and expectations. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations include, but are not limited to, changes in interest rates, national and regional economic conditions, legislative and regulatory changes, monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality and composition of our loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in our market area, changes in real estate market values in our area, and changes in relevant accounting principles and guidelines.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, we do not undertake, and specifically disclaim any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

General

Delanco Bancorp, Inc. is the holding company for Delanco Federal Savings Bank. Delanco Federal Savings Bank operates from two offices in Burlington County, New Jersey. Delanco Federal Savings Bank is engaged primarily in the business of attracting deposits from the general public and using such funds to originate a variety of consumer and business loans.

Balance Sheet Analysis

Overview. Total assets at December 31, 2017 were $128.2 million, an increase of $1.2 million from total assets of $127.0 million at March 31, 2017. The total liabilities were $114.9 million, an increase of 1.4 million from total liabilities of $113.5 million for the period ending March 31, 2017. Total stockholders’ equity decreased $242 thousand to $13.2 million at December 31, 2017, primarily due to the previously discussed one-time $428 thousand additional income tax charge resulting from the adjustment in federal corporate income tax rates that are used in the calculation of our deferred tax asset.

Loans. At December 31, 2017, total loans, net, were $83.7 million, or 65.3% of total assets. Overall loans decreased by $712 thousand during the nine months ended December 31, 2017, primarily due to payoffs and normal amortizations in the residential mortgage portfolio as well as the transfer of one residential mortgage loan in the amount of $410 thousand to real estate owned, net pay downs in the home equity line of credit portfolio of $426 thousand, the conversion of $629 thousand in residential construction loans into permanent residential mortgages and a decrease in home equity loans by $157 thousand. These decreases were offset by increases in commercial loans by $996 thousand and commercial and multi-family real estate loans by $608 thousand.

Total nonperforming loans at December 31, 2017 decreased $360 thousand from March 31, 2017 primarily due to the sale of a non-performing commercial mortgage in the amount of $253 thousand and various other improvements during the period.

Securities. The investment securities portfolio was $23.3 million, or 18.2% of total assets, at December 31, 2017. At that date, 2.4% of the investment portfolio was invested in mortgage-backed securities, 8.6% was invested in certificates of deposit while the remainder was invested primarily in U.S. Government agency and other debt securities. Investment securities decreased $1.9 million compared to March 31, 2017.

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Deposits. Total deposits were $113.6 million at December 31, 2017, an increase of $1.5 million compared to March 31, 2017. Deposits increased as we made a conscious effort to attract core deposits and reduce our reliance on high costing time deposits. Core deposits grew for the nine months ended December 31, 2017 by $3.6 million while time deposits decreased by $2.1 million.

Results of Operations for the Three and Nine Months Ended December 31, 2017 and 2016

Financial Highlights.  The net loss for the three and nine months ended December 31, 2017 was $479 thousand and $325 thousand, respectively, as compared to net income of $3 thousand and $81 thousand for the same prior year periods. The decrease in net income for the nine months ended December 31, 2017 was primarily the result of an increase in income tax expense due to the change in the federal corporate tax rates that impacted the deferred tax asset calculation plus merger related expenses. The change in the corporate tax rate resulted in a one-time additional federal income tax expense of $428 thousand. In this current quarter the company recognized $221 thousand of merger related expenses associated with the previously mentioned Agreement and Plan of Reorganization which provides for the acquisition of the Company by First Bank. Pretax income without the merger related expenses for the three and nine months ended December 31, 2017 were $165 thousand and $487 thousand, respectively, as compared to $5 thousand and $156 thousand for the same prior year periods.

Net Interest Income.   Net interest income increased $44 thousand to $931 thousand for the three months and increased $107 thousand to $2.8 million for the nine months ended December 31, 2017. The Bank saw an increase in the interest rate spread (11 basis point) and an increase in net interest margin (12 basis points) for the nine month period. Total interest income increased $42 thousand or 4.1% for the three months ending December 31, 2017 compared to the three months ended December 31, 2016. Interest income increased $86 thousand or 2.8% for the nine months ending December 31, 2017 compared to the nine months ended December 31, 2016. Total interest expense decreased by $2 thousand or 1.5% between the three month period and $21 thousand or 5.2% for the nine month period ending December 31, 2017.

Average loans in the nine months ended December 31, 2017 increased $898 thousand, or 1.1%, compared with the same period in 2016, as new originations were slightly higher than payoffs and amortization of the portfolio as well as the conversion of non-performing loans into real estate owned. Average investment securities in the nine months ended December 31, 2017 decreased $2.7 million, or 12.2%, compared to the same period in 2016. The decrease in the investment portfolio was due to calls of debt securities due to the low interest rate environment during the period. Declining interest rates offset by the increase in outstanding balances in the loan portfolio resulted in an average yield on earning assets of 3.64% for the nine months ended December 31, 2017 and 3.51% for the nine months ended December 31, 2016.

Average interest-bearing deposits in the nine months ended December 31, 2017 decreased $883 million or 0.1%, compared with the same period in 2016. Interest rates decreased the average cost of deposits to 0.50%, compared with 0.52% for the same period in 2016.

Provision for Loan Losses.  The allowance for loan losses is a valuation allowance for probable losses inherent in the loan portfolio.  We evaluate the need to establish allowances against losses on loans on a quarterly basis.  When additional allowances are necessary, a provision for loan losses is charged to earnings.  There was a recapture from loan loss reserve of $25 thousand in the three months and a recapture of $110 thousand in the nine months ended December 31, 2017 compared to a provision of $26 thousand in the three months and a recapture of $22 thousand in the nine months ended December 31, 2016.  We had zero charge-offs in the three months and $50 thousand in the nine months ended December 31, 2017, compared to $77 thousand and $173 thousand in charge-offs in the same prior year periods. We had recoveries to the allowance of $20 thousand in the three months and $165 thousand in the nine months ended December 31, 2017 as compared to $25 thousand and $112 thousand in recoveries in the same prior year period. This resulted in net recoveries of $20 thousand and $115 thousand for the three month and nine month periods ended December 31, 2017 as compared to net charge-offs of $52 thousand and $61 thousand in the same prior year periods .

Non-Interest Income.  Non-interest income decreased $3 thousand in the three month period ending December 31, 2017 compared to the three month period ended December 31, 2016, primarily due to a loss on sale of real estate owned in the period versus the previous year. Non-interest income increased $91 thousand in the nine months ended December 31, 2017 compared to the same period in the prior year, primarily due to the gain on sale of an asset.

Non-Interest Expenses.  Non-interest expenses increased $153 thousand in the three months and $175 thousand in the nine months ending December 31, 2016 primarily due to $221 thousand in merger related expenses but was partially offset by the decrease in the real estate owned loss reserve provision.

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 Liquidity Management 

Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments, maturities of and payments on investment securities and borrowings from the Federal Home Loan Bank of New York, Atlantic Central Bankers Bank and the Federal Reserve Bank of Philadelphia. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

We regularly adjust our investments in liquid assets based upon our assessment of (1) expected loan demand, (2) expected deposit flows, (3) yields available on interest-earning deposits and securities and (4) the objectives of our asset/liability management policy.

Our most liquid assets are cash and cash equivalents. The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At December 31, 2017, cash and cash equivalents totaled $11.7 million. At December 31, 2017, we had no outstanding borrowings and had arrangements to borrow up to $10.1 million from the Federal Home Loan Bank of New York and $1 million from Atlantic Central Bankers Bank.

At December 31, 2017, substantially all of our investment securities were classified as held to maturity. We have classified our investments in this manner, rather than as available for sale, because they were purchased primarily to provide a source of income and not to provide liquidity. We anticipate that a portion of future investments will be classified as available for sale in order to give us greater flexibility in the management of our investment portfolio.

A significant use of our liquidity is the funding of loan originations. At December 31, 2017, we had $282 thousand in outstanding loan commitments. In addition we had $6.8 million in unused lines of credit. Historically, many of the lines of credit expire without being fully drawn; therefore, the total commitment amounts do not necessarily represent future cash requirements. Another significant use of our liquidity is the funding of deposit withdrawals. Certificates of deposit due within one year of December 31, 2017 totaled $20.1 million, or 55.7% of certificates of deposit. The large percentage of certificates of deposit that mature within one year reflects customers’ hesitancy to invest their funds for long periods in the recent low interest rate environment. If these maturing deposits do not remain with us, we will be required to seek other sources of funds, including other certificates of deposit and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before December 31, 2018. We believe, however, based on past experience that a significant portion of our certificates of deposit will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Our primary investing activities are the origination and purchase of loans and the purchase of securities. Our primary financing activities consist of activity in deposit accounts and Federal Home Loan Bank advances. Deposit flows are affected by the overall level of interest rates, the interest rates and products offered by us and our local competitors and other factors. We generally manage the pricing of our deposits to be competitive. Occasionally, we offer promotional rates on certain deposit products to attract deposits.

The Company is a separate entity and apart from the Bank and must provide for its own liquidity. As of December 31, 2017, the Company had $419 thousand in cash and cash equivalents compared to $399 thousand as of December 31, 2016.  Substantially all of the Company’s cash and cash equivalents were obtained from proceeds it retained from the Bank’s mutual-to-stock conversion completed in October 2013. In addition to its operating expenses, Company may utilize its cash position for the payment of dividends or to repurchase common stock, subject to applicable restrictions.   

28

The Company can receive dividends from the Bank. Payment of such dividends to the Company by the Bank is limited under federal law. The amount that can be paid in any calendar year, without prior regulatory approval, cannot exceed the retained net earnings (as defined) for the year plus the preceding two calendar years.

Capital Management. We are subject to various regulatory capital requirements administered by the OCC, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories.

Off-Balance Sheet Arrangements. In the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit.

For the quarter ended December 31, 2017, we did not engage in any off-balance sheet transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

Not applicable as the Company is a smaller reporting company.

Item 4.   Controls and Procedures

The Company’s management, including the Company’s principal executive officer and principal financial officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by Rule 13(a)-15(e) that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II. Other Information

Item 1.   Legal Proceedings

Delanco Bancorp is not involved in any pending legal proceedings. Delanco Federal Savings Bank is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings, in the aggregate, are believed by management to be immaterial to its financial condition and results of operations.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017, which could materially and adversely affect the Company’s business, financial condition or future results. The risks described in the Company’s Form 10-K are not the only risks that the Company faces. Additional risks and uncertainties not currently known to the Company or that that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.

29

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

Not Applicable.

Item 3.   Defaults upon Senior Securities

Not Applicable.

Item 4.   Mine Safety Disclosures.

Not Applicable.

Item 5.   Other Information

None.

Item 6.   Exhibits

3.1	Certificate of Incorporation(1)
3.2	Bylaws(2)
4.0	Form of Specimen Stock Certificate(3)
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.0	Section 1350 Certification
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (Loss); (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to the Consolidated Financial Statements.

(1) Incorporated by reference to Exhibit 3.1 to the Company’s Form S-1 (File No. 333-189244) filed with the Commission on June 12, 2013.

(2) Incorporated by reference to Exhibit 3.2 to the Company’s Form S-1 (File No. 333-189244) filed with the Commission on June 12, 2013.

(3) Incorporated by reference to Exhibit 4.0 to the Company’s Form S-1 (File No. 333-189244) filed with the Commission on June 12, 2013.

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Signatures

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	DELANCO BANCORP, INC.
Dated: February 14, 2018	By:	/s/ James E. Igo
		James E. Igo
		Chairman, President and Chief Executive Officer
Dated: February 14, 2018	By:	/s/ Eva Modi
		Eva Modi
		Chief Financial Officer

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EX-31.1

Exhibit 31.1

Certification

I, James E. Igo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Delanco Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 14, 2018	/s/ James E. Igo
	James E. Igo Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Eva Modi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Delanco Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 14, 2018	/s/ Eva Modi
	Eva Modi Chief Financial Officer

EX-32.0

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADDED BY

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Delanco Bancorp, Inc. (the “Company”) on Form 10-Q for the quarterly period ended December 31, 2017, as filed with the Securities and Exchange Commission (the “Report”), we hereby certify pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in this Report fairly presents, in all material respects, the consolidated financial condition and results of the Company as of and for the period covered by this Report.

By:	/s/ James E. Igo James E. Igo President and Chief Executive Officer February 14, 2018
By:	/s/ Eva Modi Eva Modi Chief Financial Officer February 14, 2018

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Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2017	Feb. 06, 2018
Document Information [Line Items]
Entity Registrant Name	Delanco Bancorp, Inc.
Entity Central Index Key	0001577603
Trading Symbol	dlno
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		945,425
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Consolidated Statements of Financial Condition (Current Period Unaudited) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
ASSETS
Cash and amounts due from banks	$ 1,035,252	$ 511,355
Interest-bearing deposits	10,700,468	6,487,188
Total cash and cash equivalents	11,735,720	6,998,543
Investment Securities
Securities available-for-sale (amortized cost of $2,066,023 and $2,588,817 at December 31, 2017 and March 31, 2017, respectively)	2,065,571	2,594,888
Securities held-to-maturity (fair value $20,655,700 and $21,797,695 at December 31, 2017 and March 31, 2017, respectively)	21,281,594	22,622,835
Total investment securities	23,347,165	25,217,723
Loans, net of allowance for loan losses of $1,005,774 at December 31, 2017 (unaudited), $1,001,449 at March 31, 2017	83,701,818	84,414,361
Accrued interest receivable	378,836	378,243
Real estate owned	1,311,438	1,271,302
Federal Home Loan Bank, at cost	102,000	124,300
Premises and equipment, net	5,878,969	6,047,703
Deferred income taxes	1,396,400	1,981,950
Bank-owned life insurance	178,514	178,514
Other assets	148,586	374,714
Total assets	128,179,446	126,987,353
LIABILITIES
Non-interest bearing deposits	12,364,748	11,703,567
Interest bearing deposits	101,224,233	100,377,179
Total deposits	113,588,981	112,080,746
Accrued interest payable	1,734	6,273
Advance payments by borrowers for taxes and insurance	446,000	500,485
Other liabilities	892,237	908,005
Total liabilities	114,928,952	113,495,509
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at December 31, 2017 and March 31, 2017, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at December 31, 2017 and March 31, 2017	9,454	9,454
Additional paid-in capital	10,071,835	10,029,506
Retained earnings, substantially restricted	3,711,194	4,036,465
Unearned common stock held by employee stock ownership plan	(409,963)	(455,514)
Accumulated other comprehensive (loss)	(132,026)	(128,067)
Total stockholder’s equity	13,250,494	13,491,844
Total liabilities and stockholders’ equity	$ 128,179,446	$ 126,987,353

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Consolidated Statements of Financial Condition (Current Period Unaudited) (Parentheticals) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Securities available-for-sale, amortized cost	$ 2,066,023	$ 2,588,817
Securities held-to-maturity , fair value	20,655,700	21,797,695
Loans, allowance for loan losses	$ 1,005,774	$ 1,001,449
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	945,425	945,425
Common stock, outstanding (in shares)	945,425	945,425

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Consolidated Statements of Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
INTEREST INCOME
Loans	$ 897,940	$ 875,015	$ 2,706,558	$ 2,641,794
Investment securities	163,567	144,313	481,205	460,080
Total interest income	1,061,507	1,019,328	3,187,763	3,101,874
INTEREST EXPENSE
Interest-bearing checking accounts	10,214	11,512	26,987	33,664
Passbook and money market accounts	32,954	30,158	95,798	89,850
Certificates of deposits	86,888	90,016	257,019	272,014
Federal Home Loan Bank Advances		336	15	5,148
Total interest expense	130,056	132,022	379,819	400,676
Net interest income	931,451	887,306	2,807,944	2,701,198
Provision (recovery)for loan losses	(25,000)	26,000	(110,000)	(22,000)
Net interest income after provision for loan losses	956,451	861,306	2,917,944	2,723,198
NON-INTEREST INCOME
Gain on sale of an asset			71,516
Gain(Loss) on sale of real estate owned	(1,218)	300	22,197	(2,540)
Service charges	30,139	31,351	93,490	93,781
Rental income	9,310	9,597	28,510	34,632
Other	3,691	3,581	11,704	11,010
Total non-interest income	41,922	44,829	227,417	136,883
NON-INTEREST EXPENSE
Salaries and employee benefits	405,615	403,015	1,222,418	1,200,653
Advertising	4,708	3,844	12,615	15,221
Office supplies, telephone and postage	22,044	23,613	76,257	77,620
Loan expenses	4,925	6,561	25,158	40,893
Occupancy expense	140,376	146,685	421,574	440,038
Federal insurance premiums	19,444	1,247	61,506	86,673
Real estate owned loss reserve		49,000	80,218	62,100
Data processing expenses	65,226	61,431	190,930	188,589
ATM expenses	14,076	11,310	39,220	27,610
Bank charges and fees	19,566	20,504	61,194	64,606
Insurance and surety bond premiums	19,944	20,575	60,711	65,304
Dues and subscriptions	5,362	8,831	22,417	33,285
Professional fees	49,943	77,164	200,558	202,784
Real Estate Owned expense	29,010	31,831	83,432	93,982
Merger Related Expense	220,959		220,959
Other	32,950	35,175	100,601	105,036
Total non-interest expense	1,054,148	900,786	2,879,768	2,704,394
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	(55,775)	5,349	265,593	155,687
Income tax expense	422,964	2,030	590,864	74,482
NET INCOME (LOSS)	$ (478,739)	$ 3,319	$ (325,271)	$ 81,205
INCOME (LOSS) PER COMMON SHARE (in dollars per share)	$ (0.52)	$ 0	$ (0.36)	$ 0.09

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net Income (Loss)	$ (325,271)	$ 81,205
Other comprehensive loss net of tax:
Unrealized (loss) on investment securities available for sale, net of deferred tax of ($136) and $3,280 for the nine months ended	(3,959)	(12,069)
Other comprehensive (loss)	(3,959)	(12,069)
Total Comprehensive Income (loss)	$ (329,230)	$ 69,136

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Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($)	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Unrealized (loss) on investment securities available for sale, deferred tax	$ (136)	$ 3,280

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 9 months ended Dec. 31, 2017 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Employee Stock Ownership Plan [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Mar. 31, 2017	945,425
Balance at Mar. 31, 2017	$ 9,454	$ 10,029,506	$ 4,036,465	$ (455,514)	$ (128,067)	$ 13,491,844
Net Income (Loss)			(325,271)			(325,271)
Change in unrealized gain on securities-available-for-sale, net of deferred income tax of--------					(3,959)	(3,959)
Employee stock option expense		34,430				34,430
Shares of common stock transferred to ESOP for services		7,899		45,551		53,450
Balance (in shares) at Dec. 31, 2017	945,425
Balance at Dec. 31, 2017	$ 9,454	$ 10,071,835	$ 3,711,194	$ (409,963)	$ (132,026)	$ 13,250,494

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flow from operating activities
Net Income (Loss)	$ (325,271)	$ 81,205
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
ESOP amortization	45,551	45,551
Deferred income taxes	588,114	71,780
Depreciation	175,134	194,432
Discount accretion net of premium amortization	363	(31,307)
Recovery of loan losses	(110,000)	(22,000)
(Gain) Loss on sale of real estate owned	(22,197)	2,540
Compensation expense for stock options	42,329	21,505
(Increase) decrease in:
Accrued interest receivable	(593)	11,771
Other assets	226,128	175,971
Increase (decrease) in:
Accrued interest payable	(4,539)	(4,721)
Other liabilities	(15,768)	82,274
Net cash provided by operating activities	599,251	629,001
Cash flows from investing activities
Proceeds of securities available for sale	522,794	525,109
Purchases of securities available for sale		(500,000)
Purchases of securities held-to-maturity		(19,965,000)
Proceeds from maturities and principal repayments of securities held-to-maturity	1,340,878	18,919,864
Sale of investment required by law – stock in Federal Home Loan Bank	22,300	129,500
Proceeds from sale of real estate owned	311,342	466,285
Net (increase) decrease in loans	493,262	(1,234,749)
Purchases of premises and equipment	(6,400)	(11,737)
Net cash provided by(used in) investing activities	2,684,176	(1,670,728)
Cash flows from financing activities
Increase in deposits	1,508,235	2,915,685
(Increase) decrease in advance payments by borrowers for taxes and insurance	(54,485)	21,320
(Decrease) in Federal Home Loan Bank advance		(3,000,000)
Net cash provided by (used in) financing activities	1,453,750	(62,995)
Net increase (decrease) in cash and cash equivalents	4,737,177	(1,104,722)
Cash and cash equivalents, beginning of the period	6,998,543	12,127,388
Cash and cash equivalents, end of period	11,735,720	11,022,666
Supplemental Disclosures:
Cash paid during the period for interest	386,242	402,467
Cash paid during the period for income taxes	2,500	2,500
Loans transferred to foreclosed real estate during the period	410,000	610,148
Net change in unrealized gain on securities available-for-sale net of tax	$ (3,959)	$ (12,069)

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Note 1 - Basis of Presentation	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Basis of Accounting [Text Block]

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Note 2 - Use of Estimates	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Use of Estimates [Text Block]

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Note 3 - Deferred Income Taxes	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]
Deferred Income Taxes [Member]
Notes to Financial Statements
Income Tax Disclosure [Text Block]

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Note 4 - Income Taxes	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]

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Note 5 - Earnings Per Share	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]

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Note 6 - Termination of Regulatory Agreement	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]

XML

Note 7 - Recent Accounting Pronouncements	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

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Note 8 - Fair Value of Financial Instruments	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Fair Value, Measurement Inputs, Disclosure [Text Block]

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Note 9 - Loans	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

XML

Note 10 - Investment Securities	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

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Note 11 - Agreement and Plan of Reorganization	9 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Business Combination Disclosure [Text Block]

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Note 5 - Earnings Per Share (Tables)	9 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	null

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Note 8 - Fair Value of Financial Instruments (Tables)	9 Months Ended
	Dec. 31, 2017
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	null
Fair Value Measurements, Nonrecurring [Table Text Block]	null
Fair Value, by Balance Sheet Grouping [Table Text Block]	nullnull
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]	null

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Note 9 - Loans (Tables)	9 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	null
Financing Receivable Credit Quality Indicators [Table Text Block]	null
Past Due Financing Receivables [Table Text Block]	null
Impaired Financing Receivables [Table Text Block]	null
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]	nullnull
Schedule of Financing Receivables, Non Accrual Status [Table Text Block]	null
Troubled Debt Restructurings on Financing Receivables [Table Text Block]	null
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods [Table Text Block]	null
Real Estate Owned [Table Text Block]	nullnull
Schedule of Charge-offs [Table Text Block]	null
Allowance for Credit Losses on Financing Receivables [Table Text Block]	null

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Note 10 - Investment Securities (Tables)	9 Months Ended
	Dec. 31, 2017
Notes Tables
Held-to-maturity Securities [Table Text Block]	nullnull
Available-for-sale Securities [Table Text Block]	nullnull
Investments Classified by Contractual Maturity Date [Table Text Block]	nullnull
Schedule of Unrealized Loss on Investments [Table Text Block]	nullnull

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Note 1 - Basis of Presentation (Details Textual)	Oct. 16, 2013 USD ($) shares
Stock Issued During Period, Shares, New Issues | shares	525,423
Exchange of Common Stock Shares | shares	420,002
Proceeds from Reorganization and Stock Offering | $	$ 3,280,000
Costs from Reorganization and Stock Offering | $	$ 923,000

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Note 3 - Deferred Income Taxes (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2019
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	$ 428
Discrete Tax Expense, Per Diluted Share	$ 0.46
GAAP Capital Ratio, Basis Points in Excess of Tier 1 Regulatory Capital Ratio	107.00%
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%

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Note 4 - Income Taxes (Details Textual) $ in Thousands	9 Months Ended
	Dec. 31, 2017 USD ($)
Liability for Uncertainty in Income Taxes, Current	$ 0
Earliest Tax Year [Member] | Federal and State Jurisdiction [Member]
Open Tax Year	2014
Latest Tax Year [Member] | Federal and State Jurisdiction [Member]
Open Tax Year	2016

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Note 5 - Earnings Per Share - Earnings Per Share Reconciliation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Numerator	$ (478,739)	$ 3,319	$ (325,271)	$ 81,205
Denominators:
Basic shares outstanding (in shares)	913,758	910,239	913,758	910,239
Effect of dilutive securities (in shares)		4,252		4,252
Dilutive shares outstanding (in shares)	913,758	914,491	913,758	914,491
Earnings per share:
Basic (in dollars per share)	$ (0.52)	$ 0	$ (0.36)	$ 0.09
Dilutive (in dollars per share)	$ (0.52)	$ 0	$ (0.36)	$ 0.09

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Available-for-sale securities	$ 2,065,571	$ 2,594,888
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	2,066,000	2,595,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value On a Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Fair Value, Inputs, Level 1 [Member]
Total
Fair Value, Inputs, Level 2 [Member]
Total
Fair Value, Inputs, Level 3 [Member]
Total	5,238	6,154
Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Impaired loans
Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Impaired loans
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Impaired loans	3,927	4,883
Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member]
Real estate owned
Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Real estate owned
Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Real estate owned	$ 1,311	$ 1,271

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Note 8 - Fair Value of Financial Instruments - Estimated Fair Value of Assets and Liabilities (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Financial Assets:
Investment securities-available for sale	$ 2,065,571	$ 2,594,888
Investment securities-held to maturity	20,655,700	21,797,695
Accrued interest receivable	378,836	378,243
Bank-owned life insurance	178,514	178,514
Financial Liabilities:
Advance payments by borrowers for taxes and insurance	446,000	500,485
Reported Value Measurement [Member]
Financial Assets:
Cash and cash equivalents	11,736,000	6,999,000
Investment securities-available for sale	2,066,000	2,589,000
Investment securities-held to maturity	21,282,000	22,623,000
Impaired loans	83,702,000	84,414,000
FHLB stock	102,000	124,000
Accrued interest receivable	379,000	378,000
Bank-owned life insurance	179,000	179,000
Real estate owned	1,311,000	1,271,000
Total financial assets	120,757,000	118,577,000
Loans receivable,– net	83,702,000	84,414,000
Financial Liabilities:
Deposits-non-interest bearing	12,365,000	11,704,000
Deposits-interest bearing	101,224,000	100,377,000
Advance payments by borrowers for taxes and insurance	446,000	500,000
Accrued interest payable	2,000	6,000
Total financial liabilities	114,037,000	112,587,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets:
Cash and cash equivalents	11,736,000	6,999,000
Investment securities-available for sale
Investment securities-held to maturity
Impaired loans
FHLB stock	102,000	124,000
Accrued interest receivable	379,000	378,000
Bank-owned life insurance	179,000	179,000
Real estate owned
Total financial assets	12,396,000	7,680,000
Loans receivable,– net
Financial Liabilities:
Deposits-non-interest bearing	12,365,000	11,704,000
Deposits-interest bearing
Advance payments by borrowers for taxes and insurance	446,000	500,000
Accrued interest payable	2,000	6,000
Total financial liabilities	12,813,000	12,210,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Assets:
Cash and cash equivalents
Investment securities-available for sale	2,066,000	2,595,000
Investment securities-held to maturity	20,656,000	21,798,000
Impaired loans
FHLB stock
Accrued interest receivable
Bank-owned life insurance
Real estate owned
Total financial assets	22,722,000	24,393,000
Loans receivable,– net
Financial Liabilities:
Deposits-non-interest bearing
Deposits-interest bearing	99,530,000	99,183,000
Advance payments by borrowers for taxes and insurance
Accrued interest payable
Total financial liabilities	99,530,000	99,183,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Cash and cash equivalents
Investment securities-available for sale
Investment securities-held to maturity
Impaired loans	85,243,000	83,833,000
FHLB stock
Real estate owned	1,311,000	1,271,000
Total financial assets	86,554,000	85,104,000
Loans receivable,– net	85,243,000	83,833,000
Financial Liabilities:
Deposits-non-interest bearing
Deposits-interest bearing
Advance payments by borrowers for taxes and insurance
Total financial liabilities

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Note 8 - Fair Value of Financial Instruments - Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Commitments to Extend Credit [Member]
Off-balance sheet instruments
Commitments to extend credit	$ 7,061	$ 6,620

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Note 9 - Loans (Details Textual) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($)	Mar. 31, 2017 USD ($)
Maximum Loan to One Borrower Limitation, Percentage of Capital Funds	15.00%
Maximum Loan to One Borrower Limitation	$ 1,900
Additional Loan to One Borrower Limitation if Collateralized, Percentage of Adjusted Capital Funds	10.00%
Adjusted Capital Funds Value	$ 1,300
Financing Receivable, Modifications, Recorded Investment	1,942	$ 2,376
Financing Receivable, Recorded Investment, Nonaccrual Status	1,985	1,911
Impaired Financing Receivable, Average Recorded Investment	4,296	5,225
Impaired Financing Receivable, Interest Income, Cash Basis Method	102	$ 173
Financing Receivable Nonaccrual, Downgraded from Accruing Status	697
Allowance for Loan and Lease Losses, Write-offs	$ 50
Allowance for Loan Loss to Loans Outstanding Ratio	1.19%
Increase (Decrease) in Non-performing Assets	$ (320)
Non-performing Assets As Percentage of Total Assets	4.09%	4.38%
Partial Charge-offs [Member]
Allowance for Loan and Lease Losses, Write-offs	$ 50	$ 175
Total Charge-offs [Member]
Allowance for Loan and Lease Losses, Write-offs		40
Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment	$ 327	$ 1,296
Nonperforming Financial Instruments [Member] | Payment Deferral [Member]
Financing Receivable, Modifications, Number of Contracts	6
Financing Receivable, Modifications, Recorded Investment	$ 871
In Non-accrual Status [Member]
Financing Receivable, Number of Contracts, Nonaccrual Status	16	17
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2,300	$ 3,200
Increase (Decrease) in Finance Receivables	(895)
Proceeds from Collection of Loans Receivable	$ 9
Residential Portfolio Segment [Member]
Financing Receivable, Modifications, Number of Contracts		1
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 1,308	$ 1,180
Financing Receivable Non-accrual, Returned to Accruing Status	222
Financing Receivable Nonaccrual Status, Transferred to Real Estate Owned	410
Financing Receivable Nonaccrual, Downgraded from Accruing Status	385
Allowance for Loan and Lease Losses, Write-offs	0	102
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment	$ 327	740
Residential Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Non-owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 547	506
Financing Receivable, Non-accrual Status, Sold During Period	253
Financing Receivable Nonaccrual, Downgraded from Accruing Status	298
Allowance for Loan and Lease Losses, Write-offs	50	71
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment		425
Commercial Real Estate Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Interest Rate Maturity Or Re-price	7 years
Loan Amortization Period	25 years
Commercial Real Estate Portfolio Segment [Member] | Minimum [Member]
Interest Rate Maturity Or Re-price	5 years
Construction Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status
Allowance for Loan and Lease Losses, Write-offs	0
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment
Construction Portfolio Segment [Member] | Maximum [Member]
Loan Term	1 year
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 14
Financing Receivable Nonaccrual, Downgraded from Accruing Status	14
Allowance for Loan and Lease Losses, Write-offs	0
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment
Consumer Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 116	172
Financing Receivable Non-accrual, Returned to Accruing Status	479
Financing Receivable, Nonaccrual Status, Partial Charge-Offs	35
Allowance for Loan and Lease Losses, Write-offs
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment
Home Equity Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status		53
Financing Receivable Non-accrual, Returned to Accruing Status	184
Allowance for Loan and Lease Losses, Write-offs		42
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment		$ 131

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Note 9 - Loans - Loans (Details) - USD ($)	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Loans	$ 84,762,000	$ 84,762,000	$ 85,477,000
Net deferred loan origination fees		(54,000)	(62,000)
Allowance for loan losses	(1,005,774)	(1,006,000)	(1,001,449)	$ (1,099,000)
Loans, net	83,701,818	83,702,000	84,414,361
Residential Portfolio Segment [Member]
Loans	60,450,000	60,450,000	61,419,000
Allowance for loan losses	(578,000)		(575,000)
Commercial Real Estate Portfolio Segment [Member]
Loans	12,679,000	12,679,000	12,071,000
Allowance for loan losses	(264,000)		(274,000)
Commercial Portfolio Segment [Member]
Loans	2,854,000	2,854,000	1,858,000
Allowance for loan losses	(66,000)		(64,000)
Home Equity Portfolio Segment [Member]
Loans	8,083,000	8,083,000	8,812,000
Allowance for loan losses	(77,000)		(74,000)
Consumer Portfolio Segment [Member]
Loans	645,000	645,000	637,000
Allowance for loan losses	(19,000)		(12,000)
Construction Portfolio Segment [Member]
Loans	51,000	$ 51,000	680,000
Allowance for loan losses	$ (2,000)		$ (2,000)

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Note 9 - Loans - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017
Loans	$ 84,762	$ 84,762	$ 85,477
Nonperforming Financial Instruments [Member]
Loans	3,927
Pass [Member]
Loans	80,584
Special Mention [Member]
Loans
Classified Loans [Member]
Loans	251
Residential Portfolio Segment [Member]
Loans	60,450	60,450	61,419
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	2,318
Residential Portfolio Segment [Member] | Pass [Member]
Loans	58,132
Residential Portfolio Segment [Member] | Special Mention [Member]
Loans
Residential Portfolio Segment [Member] | Classified Loans [Member]
Loans
Commercial Real Estate Portfolio Segment [Member]
Loans	12,679	12,679	12,071
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	1,203
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]
Loans	11,313
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Real Estate Portfolio Segment [Member] | Classified Loans [Member]
Loans	163
Commercial Portfolio Segment [Member]
Loans	2,854	2,854	1,858
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	116
Commercial Portfolio Segment [Member] | Pass [Member]
Loans	2,650
Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Portfolio Segment [Member] | Classified Loans [Member]
Loans	88
Home Equity Portfolio Segment [Member]
Loans	8,083	8,083	8,812
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	225
Home Equity Portfolio Segment [Member] | Pass [Member]
Loans	7,858
Home Equity Portfolio Segment [Member] | Special Mention [Member]
Loans
Home Equity Portfolio Segment [Member] | Classified Loans [Member]
Loans
Consumer Portfolio Segment [Member]
Loans	645	645	637
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	14
Consumer Portfolio Segment [Member] | Pass [Member]
Loans	631
Consumer Portfolio Segment [Member] | Special Mention [Member]
Loans
Consumer Portfolio Segment [Member] | Classified Loans [Member]
Loans
Construction Portfolio Segment [Member]
Loans	51	$ 51	$ 680
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	51
Construction Portfolio Segment [Member] | Pass [Member]
Loans
Construction Portfolio Segment [Member] | Special Mention [Member]
Loans
Construction Portfolio Segment [Member] | Classified Loans [Member]
Loans

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Note 9 - Loans - Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017
Past due loans	$ 4,159
Current loans	80,603
Loans	$ 84,762	$ 84,762	$ 85,477
Percentage past due loans	4.91%
Percentage of current loans	95.09%
Percentage of Total Loans	100.00%
Residential Portfolio Segment [Member]
Past due loans	$ 2,277
Current loans	58,173
Loans	60,450	60,450	61,419
Commercial Real Estate Portfolio Segment [Member]
Past due loans	1,660
Current loans	11,019
Loans	12,679	12,679	12,071
Commercial Portfolio Segment [Member]
Past due loans	116
Current loans	2,738
Loans	2,854	2,854	1,858
Home Equity Portfolio Segment [Member]
Past due loans	64
Current loans	8,019
Loans	8,083	8,083	8,812
Consumer Portfolio Segment [Member]
Past due loans	42
Current loans	603
Loans	645	645	637
Construction Portfolio Segment [Member]
Current loans	51
Loans	51	$ 51	$ 680
Financing Receivables, 30 to 59 Days Past Due [Member]
Past due loans	$ 1,320
Percentage past due loans	1.56%
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 278
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	950
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	64
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans	28
Financing Receivables, 60 to 89 Days Past Due [Member]
Past due loans	$ 527
Percentage past due loans	0.62%
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 364
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	163
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Past due loans	$ 2,312
Percentage past due loans	2.73%
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 1,635
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	547
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	116
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans	$ 14

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Note 9 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2017
Impaired loans for which a valuation allowance has been provided
Impaired loans for which no valuation allowance has been provided	3,927	4,883
Total loans determined to be impaired	3,927	4,883
Allowance for loans losses related to impaired loans
Average recorded investment in impaired loans	4,296	5,225
Cash basis interest income recognized on impaired loans	$ 102	$ 173

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Note 9 - Loans - Impaired Loans by Portfolio (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2017
Recorded investment, no valuation allowance	$ 4,004	$ 4,963
Unpaid principal balance, no valuation allowance	3,927	4,883
Average annual recorded investment, no valuation allowance	4,296	5,225
Interest income recognized while on impaired status, no valuation allowance	102	173
Residential Portfolio Segment [Member]
Recorded investment, no valuation allowance	2,039	2,289
Unpaid principal balance, no valuation allowance	1,979	2,239
Average annual recorded investment, no valuation allowance	2,182	2,711
Interest income recognized while on impaired status, no valuation allowance	39	60
Commercial Real Estate Portfolio Segment [Member]
Recorded investment, no valuation allowance	1,554	2,162
Unpaid principal balance, no valuation allowance	1,542	2,141
Average annual recorded investment, no valuation allowance	1,662	2,060
Interest income recognized while on impaired status, no valuation allowance	37	94
Commercial Portfolio Segment [Member]
Recorded investment, no valuation allowance	116	171
Unpaid principal balance, no valuation allowance	116	171
Average annual recorded investment, no valuation allowance	135	153
Interest income recognized while on impaired status, no valuation allowance	11	9
Home Equity Portfolio Segment [Member]
Recorded investment, no valuation allowance	225	283
Unpaid principal balance, no valuation allowance	225	279
Average annual recorded investment, no valuation allowance	259	242
Interest income recognized while on impaired status, no valuation allowance	13	7
Consumer Portfolio Segment [Member]
Recorded investment, no valuation allowance	14
Unpaid principal balance, no valuation allowance	14
Average annual recorded investment, no valuation allowance	2	1
Interest income recognized while on impaired status, no valuation allowance
Construction Portfolio Segment [Member]
Recorded investment, no valuation allowance	56	58
Unpaid principal balance, no valuation allowance	51	53
Average annual recorded investment, no valuation allowance	56	58
Interest income recognized while on impaired status, no valuation allowance	$ 2	$ 3

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Note 9 - Loans - Nonaccrual Loans (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017	Mar. 31, 2016
Non-accrual loans:
Nonaccrual loans	$ 1,985,000	$ 1,911,000
Accruing loans past due 90 days or more:
Accruing loans past 90 days or more
Troubled Debt Restructurings:
Troubled debt restructurings	1,942,000	2,376,000
Real estate owned	1,311,438	1,271,302	$ 1,763,000
Total non-performing assets	$ 128,179,446	$ 126,987,353
Non-performing loans as a percentage of loans	4.63%	5.02%
Non-performing assets as a percentage of loans and real estate owned	6.09%	6.41%
Non-performing assets as percentage of total assets	4.09%	4.38%
Nonperforming Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings	$ 327,000	$ 1,296,000
Total non-performing loans	3,927,000	4,287,000
Real estate owned	1,311,000	1,271,000
Total non-performing assets	5,238,000	5,558,000
Performing Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings	1,615,000	1,080,000
Residential Portfolio Segment [Member]
Non-accrual loans:
Nonaccrual loans	1,308,000	1,180,000
Accruing loans past due 90 days or more:
Accruing loans past 90 days or more
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings	327,000	740,000
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings	683,000	693,000
Commercial Real Estate Portfolio Segment [Member]
Non-accrual loans:
Nonaccrual loans	547,000	506,000
Accruing loans past due 90 days or more:
Accruing loans past 90 days or more
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings		425,000
Commercial Real Estate Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings	656,000	240,000
Commercial Portfolio Segment [Member]
Non-accrual loans:
Nonaccrual loans	116,000	172,000
Accruing loans past due 90 days or more:
Accruing loans past 90 days or more
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings
Commercial Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings
Consumer Portfolio Segment [Member]
Non-accrual loans:
Nonaccrual loans	14,000
Accruing loans past due 90 days or more:
Accruing loans past 90 days or more
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings
Home Equity Portfolio Segment [Member]
Non-accrual loans:
Nonaccrual loans		53,000
Accruing loans past due 90 days or more:
Accruing loans past 90 days or more
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings		131,000
Home Equity Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings	225,000	95,000
Construction Portfolio Segment [Member]
Non-accrual loans:
Nonaccrual loans
Accruing loans past due 90 days or more:
Accruing loans past 90 days or more
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings
Construction Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled Debt Restructurings:
Troubled debt restructurings	$ 51,000	$ 52,000

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Note 9 - Loans - Troubled Debt Restructurings (Details) - Residential Portfolio Segment [Member] $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($)	Mar. 31, 2017 USD ($)
Number of contracts		1
Outstanding recorded investment pre-modification		$ 77
Outstanding recorded investment post-modification		$ 96

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Note 9 - Loans - Troubled Debt Restructurings That Subsequently Defaulted (Details) - Residential Portfolio Segment [Member]	9 Months Ended
	Dec. 31, 2017 USD ($)
Troubled debt restructurings that subsequently defaulted, number of contracts
Troubled debt restructurings that subsequently defaulted, recorded investment

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Note 9 - Loans - Real Estate Owned (REO), Net of Valuation Allowance (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Balance, beginning of period			$ 1,271,302	$ 1,763,000	$ 1,763,000
Additions from loan foreclosures			410,000		500,000
Additions from capitalized costs					26,000
Dispositions of REO			(349,000)		(922,000)
Gain (loss) on sale of REO	$ (1,218)	$ 300	22,197	(2,540)	(34,000)
Valuation adjustments in the period			(44,000)		(62,000)
Balance, end of period	1,311,438		1,311,438		1,271,302
Balance, beginning of period			104,000	$ 227,000	227,000
Valuation adjustments added in the period			80,000		62,000
Valuation adjustments on disposed properties during the period			(36,000)		(185,000)
Balance, end of period	$ 148,000		$ 148,000		$ 104,000

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Note 9 - Loans - Allowance for Losses on Loans and Charge-offs (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Sep. 30, 2017
Balance, beginning of year	$ 1,006,000		$ 1,001,449	$ 1,099,000	$ 1,099,000
Provision:
Recovery of loan losses	(25,000)	$ 26,000	(110,000)	$ (22,000)	(22,000)
Charge-offs:
Loan charge-offs			50,000
Recoveries			(165,000)		(139,000)
Total Net Charge-Offs			(115,000)		76,000
Balance, end of period	1,005,774		1,005,774		1,001,449
Loans	$ 84,762,000		84,762,000		85,477,000	$ 84,762,000
Average loans outstanding			$ 85,324,000		$ 84,426,000
Allowance as a percentage of period-end loans	1.19%		1.19%		1.17%
Net charge-offs as a percentage of average loans	(0.13%)		(0.13%)		0.09%
Commercial Portfolio Segment [Member]
Balance, beginning of year			$ 64,000
Provision:
Recovery of loan losses					$ (45,000)
Charge-offs:
Loan charge-offs
Recoveries			(2,000)
Balance, end of period	$ 66,000		66,000		64,000
Loans	2,854,000		2,854,000		1,858,000	2,854,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year			274,000
Provision:
Recovery of loan losses			(7,000)		(61,000)
Charge-offs:
Loan charge-offs			50,000		71,000
Recoveries			(47,000)
Balance, end of period	264,000		264,000		274,000
Loans	12,679,000		12,679,000		12,071,000	12,679,000
Residential Portfolio Segment [Member]
Balance, beginning of year			575,000
Provision:
Recovery of loan losses			(70,000)		98,000
Charge-offs:
Loan charge-offs			0		102,000
Recoveries			(73,000)
Balance, end of period	578,000		578,000		575,000
Loans	60,450,000		60,450,000		61,419,000	60,450,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year			74,000
Provision:
Recovery of loan losses			(32,000)		29,000
Charge-offs:
Loan charge-offs					42,000
Recoveries			(35,000)
Balance, end of period	77,000		77,000		74,000
Loans	8,083,000		8,083,000		8,812,000	8,083,000
Consumer Portfolio Segment [Member]
Balance, beginning of year			12,000
Provision:
Recovery of loan losses			(1,000)		(45,000)
Charge-offs:
Loan charge-offs			0
Recoveries			(8,000)
Balance, end of period	19,000		19,000		12,000
Loans	645,000		645,000		637,000	645,000
Construction Portfolio Segment [Member]
Balance, beginning of year			2,000
Provision:
Recovery of loan losses					2,000
Charge-offs:
Loan charge-offs			0
Recoveries			0
Balance, end of period	2,000		2,000		2,000
Loans	$ 51,000		$ 51,000		$ 680,000	$ 51,000

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Note 9 - Loans - Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Sep. 30, 2017
Balance, beginning of year	$ 1,006,000		$ 1,001,449	$ 1,099,000	$ 1,099,000
Loan charge-offs			(50,000)
Recoveries			165,000		139,000
Provision for loan losses	(25,000)	$ 26,000	(110,000)	$ (22,000)	(22,000)
Balance, end of period	1,005,774		1,005,774		1,001,449
Ending balance for loans individually evaluated for impairment	3,585,000		3,585,000
Ending balance for loans collectively evaluated for impairment	81,177,000		81,177,000
Ending balance	84,762,000		84,762,000		85,477,000	$ 84,762,000
Ending balance: loans individually evaluated for impairment	3,585,000		3,585,000
Ending balance: loans collectively evaluated for impairment	81,177,000		81,177,000
Commercial Portfolio Segment [Member]
Balance, beginning of year			64,000
Loan charge-offs
Recoveries			2,000
Provision for loan losses					(45,000)
Balance, end of period	66,000		66,000		64,000
Ending balance for loans individually evaluated for impairment	186,000		186,000
Ending balance for loans collectively evaluated for impairment	2,668,000		2,668,000
Ending balance	2,854,000		2,854,000		1,858,000	2,854,000
Ending balance: loans individually evaluated for impairment	186,000		186,000
Ending balance: loans collectively evaluated for impairment	2,668,000		2,668,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year			274,000
Loan charge-offs			(50,000)		(71,000)
Recoveries			47,000
Provision for loan losses			(7,000)		(61,000)
Balance, end of period	264,000		264,000		274,000
Ending balance for loans individually evaluated for impairment	805,000		805,000
Ending balance for loans collectively evaluated for impairment	11,874,000		11,874,000
Ending balance	12,679,000		12,679,000		12,071,000	12,679,000
Ending balance: loans individually evaluated for impairment	805,000		805,000
Ending balance: loans collectively evaluated for impairment	11,874,000		11,874,000
Residential Portfolio Segment [Member]
Balance, beginning of year			575,000
Loan charge-offs			0		(102,000)
Recoveries			73,000
Provision for loan losses			(70,000)		98,000
Balance, end of period	578,000		578,000		575,000
Ending balance for loans individually evaluated for impairment	2,084,000		2,084,000
Ending balance for loans collectively evaluated for impairment	58,366,000		58,366,000
Ending balance	60,450,000		60,450,000		61,419,000	60,450,000
Ending balance: loans individually evaluated for impairment	2,084,000		2,084,000
Ending balance: loans collectively evaluated for impairment	58,366,000		58,366,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year			74,000
Loan charge-offs					(42,000)
Recoveries			35,000
Provision for loan losses			(32,000)		29,000
Balance, end of period	77,000		77,000		74,000
Ending balance for loans individually evaluated for impairment	459,000		459,000
Ending balance for loans collectively evaluated for impairment	7,624,000		7,624,000
Ending balance	8,083,000		8,083,000		8,812,000	8,083,000
Ending balance: loans individually evaluated for impairment	459,000		459,000
Ending balance: loans collectively evaluated for impairment	7,624,000		7,624,000
Consumer Portfolio Segment [Member]
Balance, beginning of year			12,000
Loan charge-offs			0
Recoveries			8,000
Provision for loan losses			(1,000)		(45,000)
Balance, end of period	19,000		19,000		12,000
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	645,000		645,000
Ending balance	645,000		645,000		637,000	645,000
Ending balance: loans individually evaluated for impairment
Ending balance: loans collectively evaluated for impairment	645,000		645,000
Construction Portfolio Segment [Member]
Balance, beginning of year			2,000
Loan charge-offs			0
Recoveries			0
Provision for loan losses					2,000
Balance, end of period	2,000		2,000		2,000
Ending balance for loans individually evaluated for impairment	51,000		51,000
Ending balance for loans collectively evaluated for impairment
Ending balance	51,000		51,000		$ 680,000	$ 51,000
Ending balance: loans individually evaluated for impairment	51,000		51,000
Ending balance: loans collectively evaluated for impairment

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Note 10 - Investment Securities (Details Textual)	Dec. 31, 2017
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	41
Securities in Unrealized Loss Positions, Depreciated Percentage from Amortized Cost	3.10%

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Note 10 - Investment Securities - Held-to-maturity Securities (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Held-to-maturity securities, amortized cost	$ 21,281,594	$ 22,622,835
Held-to-maturity securities, gross unrealized gains	32,000	58,000
Held-to-maturity securities, gross unrealized losses	(658,000)	(883,000)
Securities held-to-maturity , fair value	20,655,700	21,797,695
US Government Agencies Debt Securities [Member]
Held-to-maturity securities, amortized cost	19,918,000	20,418,000
Held-to-maturity securities, gross unrealized gains
Held-to-maturity securities, gross unrealized losses	(655,000)	(865,000)
Securities held-to-maturity , fair value	19,263,000	19,553,000
Municipal Bonds [Member]
Held-to-maturity securities, amortized cost	810,000	1,536,000
Held-to-maturity securities, gross unrealized gains
Held-to-maturity securities, gross unrealized losses	(3,000)	(3,000)
Securities held-to-maturity , fair value	807,000	1,533,000
Collateralized Mortgage Backed Securities [Member]
Held-to-maturity securities, amortized cost	554,000	669,000
Held-to-maturity securities, gross unrealized gains	32,000	58,000
Held-to-maturity securities, gross unrealized losses		(15,000)
Securities held-to-maturity , fair value	$ 586,000	$ 712,000

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Note 10 - Investment Securities - Available-for-sale Securities (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Securities available-for-sale, amortized cost	$ 2,066,023	$ 2,588,817
Available-for-sale securities - gross unrealized gains	2,000	8,000
Available-for-sale securities - gross unrealized losses	(2,000)	(2,000)
Available-for-sale securities - fair value	2,065,571	2,594,888
Certificates of Deposit [Member]
Securities available-for-sale, amortized cost	2,000,000	2,000,000
Available-for-sale securities - gross unrealized gains	2,000	8,000
Available-for-sale securities - gross unrealized losses	(2,000)
Available-for-sale securities - fair value	2,000,000	2,008,000
Mutual Fund [Member]
Securities available-for-sale, amortized cost	66,000	89,000
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses		(2,000)
Available-for-sale securities - fair value	$ 66,000	87,000
US Government Agencies Debt Securities [Member]
Securities available-for-sale, amortized cost		500,000
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses
Available-for-sale securities - fair value		$ 500,000

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Note 10 - Investment Securities - Maturities of Securities (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Held to maturity, one year or less, amortized cost	$ 810,000	$ 1,536,000
Held to maturity, one year or less, fair value	807,000	1,534,000
Available for sale, one year or less, amortized cost
Available for sale, one year or less, fair value
Held to maturity, after one year through five years, amortized cost	686,000	500,000
Held to maturity, after one year through five years, fair value	678,000	497,000
Available for sale, after one year through five years, amortized cost	2,000,000
Available for sale, after one year through five years, fair value	2,000,000
Held to maturity, after five years through ten years, amortized cost	9,346,000	8,573,000
Held to maturity, after five years through ten years, fair value	9,073,000	8,292,000
Available for sale, after five years through ten years, amortized cost		2,000,000
Available for sale, after five years through ten years, fair value		2,008,000
Held to maturity, after ten years, amortized cost	10,440,000	12,014,000
Held to maturity, after ten years, fair value	10,098,000	11,475,000
Available for sale, after ten years, amortized cost		500,000
Available for sale, after ten years, fair value		500,000
Held to maturity, no single maturity, amortized cost
Held to maturity, no single maturity, fair value
Available for sale, no single maturity, amortized cost	66,000	89,000
Available for sale, no single maturity, fair value	66,000	87,000
Held to maturity, amortized cost	21,281,594	22,622,835
Held to maturity, fair value	20,655,700	21,797,695
Available for sale, amortized cost	2,066,000	2,589,000
Available for sale, fair value	$ 2,066,000	$ 2,595,000

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Note 10 - Investment Securities - Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Securities with unrealized losses, less than 12 months, fair value	$ 3,786	$ 21,338
Securities with unrealized losses, less than 12 months, gross unrealized losses	(24)	(868)
Securities with unrealized losses, 12 months or greater, fair value	17,281	303
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(636)	(17)
Securities with unrealized losses, fair value	21,067	21,641
Securities with unrealized losses, gross unrealized losses	(660)	(885)
US Government Agencies Debt Securities [Member]
Securities with unrealized losses, less than 12 months, fair value	1,981	19,553
Securities with unrealized losses, less than 12 months, gross unrealized losses	(19)	(864)
Securities with unrealized losses, 12 months or greater, fair value	17,281
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(636)
Securities with unrealized losses, fair value	19,262	19,553
Securities with unrealized losses, gross unrealized losses	(655)	(864)
Certificates of Deposit [Member]
Securities with unrealized losses, less than 12 months, fair value	998	249
Securities with unrealized losses, less than 12 months, gross unrealized losses	(2)	(1)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Securities with unrealized losses, fair value	998	249
Securities with unrealized losses, gross unrealized losses	(2)	(1)
Municipal Bonds [Member]
Securities with unrealized losses, less than 12 months, fair value	807	1,536
Securities with unrealized losses, less than 12 months, gross unrealized losses	(3)	(3)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Securities with unrealized losses, fair value	807	1,536
Securities with unrealized losses, gross unrealized losses	$ (3)	(3)
Mutual Fund [Member]
Securities with unrealized losses, less than 12 months, fair value
Securities with unrealized losses, less than 12 months, gross unrealized losses
Securities with unrealized losses, 12 months or greater, fair value		87
Securities with unrealized losses, 12 months or greater, gross unrealized losses		(2)
Securities with unrealized losses, fair value		87
Securities with unrealized losses, gross unrealized losses		(2)
Collateralized Mortgage Backed Securities [Member]
Securities with unrealized losses, less than 12 months, fair value
Securities with unrealized losses, less than 12 months, gross unrealized losses
Securities with unrealized losses, 12 months or greater, fair value		216
Securities with unrealized losses, 12 months or greater, gross unrealized losses		(15)
Securities with unrealized losses, fair value		216
Securities with unrealized losses, gross unrealized losses		$ (15)

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Note 11 - Agreement and Plan of Reorganization (Details Textual)	3 Months Ended
	Mar. 31, 2018 shares
First Bank [Member] | Delanco Bancorp [Member] | Scenario, Forecast [Member]
Business Acquisition, Number of Acquirer Shares Convertible for Each Acquiree Share	1.11